Four months has passed since demonetization, and Prime Minister, Narendra Modi is at his all time popularity heights with the election victories in over three states. Indisputably, the demonetization saga truly was a historic event of modern India. This definitely calls for a look back, number wise.
The numbers of demonetization
Reportedly banks have received 14.97 trillion rupees of the 15.4 trillion rupees of currency demonetized. But, there has not been any official account of the exact figures. The state, however, expected a large chunk of money to get filtered out in the process, this led to a slew of changes in the objective of the whole exercise. There were upheavals of global scale against the policy from academic, economic and political poles. Among the voices against it, there were reports of low cash component in the illegal money flow system of India. Despite all this, the government completed the exercise completely without any partial rollbacks and confessions.
The winners
The clear winners of this activity were the digital payment gateways. Collectively, they experienced a 271% growth in the number of daily transactions and 267% surge in terms of transaction value. Paytm led the rooster with a whopping 435% increase in traffic and 250% increase in overall transaction value. Reflecting the trend, the government was also swift in action by launching the BHIM application that used UID number for transactions.
Some unanswered questions
But, the GDP figures from the statistics department threw up surprising figures, a solid 7% equating perfectly with the projections. However, the figures from Industry did not reflect this trend, car manufacturing sector reduced its sales growth to 1% from an 18%, two wheelers reported a 22% decline in sales. Sectors like real estate saw a 38% decline in sales, FMCG showed a 40% reduction in sales. And, the smartphone sales itself dropped 30%.
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